Danger for Private Landlords

One of the most important decision Landlords make is whether to manage their rental property themselves or enlist the services of a professional manager.

DIY property management may sound easy but it can be quite complicated and complex with numerous traps.

Issues facing landlords is legal implication, as risk management is now an important part of property management. You must ensure that If you are going to do it yourself then you need to have a thorough understand of the tenancy legislation and the extensive paperwork that is required.

The day to day issues and problems that come up need to be addressed. Common issues that you will find emerge are tenants getting behind in their rent, having pets without approval, garden and lawns not being maintained, extra tenants that are not originally accounted for, general maintenance repairs that happen while you are on holiday and the list goes on.

Landlords need to be careful that they don’t develop personal connection with their tenants, as they will then feel uncomfortable chasing rent arrears. Property Managers are emotionally removed and it becomes part of their daily routine.

Traps Private Landlord Should Avoid:

Not Having a Rental Agreement – A rental agreement is a legally enforceable contract

Failing to Take a Bond – This is a deposit held at the bond centre in case tenants don’t meet their obligations under the tenancy agreement, such as failing to pay rent or causing damage to the property.

Not Filling Out a Property Condition Report – this document along with photos’ describes the standard of repair for the premises and any items included, such as furniture. This report ensure that both parties are protected

Not Understanding Tenacy Laws – Not complying with the legislation can see landlords facing fines

Inspecting Without Correct Notice – The tenancy laws state very clearly how often inspections can be done and how much notice must be given to tenants. If Landlords fail to issue the correct notice this can mean costly penalties.

Peace of mind is one of the biggest advantage of putting your investment in the hands of a property manager, there are definitely costs involved in employing an expert, however Landlords paying for a Professional Service can use these as a taxable deduction when filing tax returns pertaining to their investment. Property Managers can also give advice on how to best present the property to ensure that a Landlord attracts a good tenant.